SP Angel Morning View -Today’s Market View, Monday 13th November 2023

Lithium prices continue to slide as refiners boost output

MiFID II exempt information – see disclaimer below

Adriatic Metals (ADT1 LN) – Rupice Northwest drilling results

Arc Minerals* (ARCM LN) – Arc completes joint venture agreement with Anglo American

Ariana Resources (AAU LN) – Asgard Investments portfolio

Empire Metals* (EEE LN) – Pitfield diamond drill programme completed and two new high-grade targets identified

Atalaya Mining (ATYM LN) – Transition from AIM to the Official List

Goldstone Resources* (GRL LN) – Gold loan update

Infinity Lithium (INF AU) – €18.8m grant for the San Jose Lithium Project

Lucara Diamonds (LUC CN) – Strong quarterly production with the 4^th diamond exceeding 1,000 carats recovered from the Karowe mine

Mkango Resources* (MKA LN) – Maiden ESG report and project update

Tolu Minerals (TOK AU) – IPO funding to restart and expand Tolukuma gold mine in PNG

Wishbone Gold* (WSBN LN) – Drilling intersects minor copper sulphide mineralisation in HW of target zone at Cottesloe

Copper steady as Shanghai kicks off Asia Copper Week

• Copper prices are continuing to hover around $8,100/t as traders look for direction.
• Miners, traders and industry participants are convening in Shanghai for Asia Copper Week, which should reveal some industry sentiment.
• The prospect of a shutdown at Cobre Panama, which supplies c. 1.5% of global copper, has supported supply concerns.
• Codelco has slashed China premiums by 36% to $89/t, suggesting 2024 demand from the metal’s largest buyer is weakening.
• China copper inventories are on the slide, down for the second week in a row.

Lithium prices continue to slide as refiners boost output

• Spodumene prices fell to $1,700/t whilst China carbonate prices eased below $20,000/t.
• Whilst spot prices are a small segment of the market, the downtrend in lithium prices has been consistent.
• The China downstream market, including cathode makers, has been in a destocking phase, reducing inventory.
• Pricing support may come from upstream lithium salt plant maintenance periods.
• September to October is considered the peak season for lithium demand, with traders disappointed.
• China’s lepidolite producers, which sit at the higher end of the cost-curve, are expected to be forced to reduce output amid the current environment, providing some support to prices.
• Despite this, Western producers are bullish, with Livent noting that they ‘believe lithium supply will continue to constrain demand.’
• Pilbara notes the market is healthy, despite ruling out buybacks and dividends.
• MinRes notes the market volatility as a product of supply chain rebalancing, and IGO sees the downtrend as a short term phenomenon.

Economics

US / China – US looking to restore communications with the Chinese military as a priority before meeting between Joe Biden and Xi Jinping.

• The restoration of communications between the two military forces is seen by the US as a priority issue by Joe Biden.
• Communication between the two sides is seen as important to prevent misunderstanding between the two superpowers.

UK – BoE looking for inflation to fall below 5% yoy

South Africa – White owned farms may be prevented from exporting products by new regulations dependent on B-BBEE status

• The Daily Investor reports new regulations will prevent many white-owned farms from obtaining necessary permits to export products to Europe and the UK.
• The Department of Agriculture, Land Reform and Rural Development’s new regulations on export permits state permits will be allocated based on the Preferential Market Access Permit Allocation System.
• The first consideration for getting a permit is applicants’ B-BBEE ‘Broad-Based Black Economic Empowerment’ status.
• The permits for exporting agricultural products are subject to the AgriBEE ‘Agricultural Black Economic Empowerment’ Sector Code.
• AgriBEE determines the status of an enterprise using five elements – ownership, management control, skills development, enterprise and supplier development, and socio-economic development.
• Farmers with turnover of >R10mpa ($535,000pa must meet specific BEE targets to continue obtaining export permits according to City Press.
• Milk, cream, butter, fruit, nuts, sugar, jam, fruit purée, fruit juices, yeast, table grapes and wine are among products affected by the new regulations.
• South Africa exported some US$12.8bn in agricultural exports last year with 20% going to the EU and 4% to the UK.
• The agricultural sector employs some 800,000 people and accounts for >2.4% of South African annual economic output.

Currencies

US$1.0692/eur vs 1.0669/eur previous. Yen 151.85/$ vs 151.40/$. SAr 18.702/$ vs 18.674/$. $1.224/gbp vs $1.223/gbp. 0.637/aud vs 0.636/aud. CNY 7.294/$ vs 7.293/$. Dollar Index 105.82 vs 105.91 previous.

Commodity News

Precious metals:

Gold US$1,938/oz vs US$1,956/oz previous

Gold ETFs 87.1moz vs 87.1moz previous

Platinum US$849/oz vs US$860/oz previous

Palladium US$967/oz vs US$980/oz previous

Silver US$22.02/oz vs US$23/oz previous

Rhodium US$4,400/oz vs US$4,550/oz previous

Base metals:

Copper US$ 8,107/t vs US$8,127/t previous

Aluminium US$ 2,212/t vs US$2,231/t previous

Nickel US$ 17,200/t vs US$17,600/t previous

Zinc US$ 2,564/t vs US$2,603/t previous

Lead US$ 2,186/t vs US$2,190/t previous

Tin US$ 25,100/t vs US$24,645/t previous

Energy:

Oil US$80.6/bbl vs US$80.2/bbl previous

• The US Baker Hughes rig count was down 2 units to 616 rigs last week (-163 or 21% y/y), with oil rigs falling 2 to 494 units (-126 y/y) and gas rigs flat at 118 units (-37 y/y) as the Gulf of Mexico fell by 2 to 17 offshore rigs.
• Iraqi oil minister Hayan Abdel-Ghani announced on Sunday that he expects to reach an agreement with the Kurdistan Regional Government (KRG) and foreign oil companies to resume oil exports within three days.

Natural Gas €46.000/MWh vs €47.250/MWh previous

Uranium UXC US$74.00/lb vs US$73.00/lb previous

Bulk:

Iron ore 62% Fe spot (cfr Tianjin) US$126.5/t vs US$124.6/t

Chinese steel rebar 25mm US$544.6/t vs US$541.4/t

Thermal coal (1st year forward cif ARA) US$109.5/t vs US$109.5/t

Thermal coal swap Australia FOB US$130.0/t vs US$128.5/t

Coking coal swap Australia FOB US$296.0/t vs US$300.0/t

Other:  

Cobalt LME 3m US$33,420/t vs US$33,420/t

NdPr Rare Earth Oxide (China) US$70,059/t vs US$70,204/t

Lithium carbonate 99% (China) US$19,811/t vs US$19,814/t

China Spodumene Li2O 6%min CIF US$1,760/t vs US$1,810/t

Ferro-Manganese European Mn78% min US$1,030/t vs US$1,027/t

China Tungsten APT 88.5% FOB US$295/mtu vs US$295/mtu

China Graphite Flake -194 FOB US$625/t vs US$625/t

Europe Vanadium Pentoxide 98% 6.2/lb vs US$6.2/lb

Europe Ferro-Vanadium 80% 26.25/kg vs US$26.25/kg

China Ilmenite Concentrate TiO2 US$312/t vs US$312/t

Spot CO2 Emissions EUA Price US$81.4/t vs US$78.8/t

Brazil Potash CFR Granular Spot US$337.5/t vs US$335.0/t

EV & Battery News

UK petrol station group EG to buy Tesla charging units

• The petrol station operator will buy Tesla’s ultra-fast charging units to help roll out its EV charging network across Europe.
• EG said it was aiming to expand its charging network from over 600 chargers currently deployed to more than 20,000 chargers at its own sites over time.
• The car industry has called for a faster expansion of the public charging network to enable drivers to make the switch.
• The UK had just over 49,000 public EV charging devices installed as of 1^st October 2023, according to government figures.

Lucid Air can directly charge other EVs with new V2V feature

• Lucid’s new ‘RangeXchange’ feature will allow Lucid Air owners to share battery power with other EVs.
• RangeXchange is a vehicle-to-vehicle (V2V) charging system that enables Lucid Airs to transfer electricity to other electric cars, regardless of the manufacturer.
• The feature will be available on all Lucid vehicles thanks to an simple over-the-air software update.
• This update will enable a Lucid Air to deliver enough power for an extra 24 to 40 miles of range to another EV in about an hour.

Volvo announces two 9,000t EV Giga Presses

• Volvo becomes the latest automaker to join the ‘Gigacasting’ revolution.
• Gigacasting is the term that has been given to a new method of manufacturing that sees vehicles constructed from two or three main components.
• A giga press is a high-pressure die-casting machine that injects molten aluminium into casting molds.
• The method was popularised by Tesla and is now being adopted by other automakers thanks to the simplification of the manufacturing process and reduction in costs.
• Tesla is believed to have first used it on the Model Y, reportedly replacing assemblies consisting of ~70 parts, with just two to three huge castings.
• Last month, Ford and Hyundai bought giga presses from Italy’s IDRA Group, the same company that supplies Tesla.
• In the same report an anonymous automaker had also purchased two giga presses, this has been confirmed as Volvo and the two presses will be installed in Volvo’s Slovakia manufacturing facility.

BEVs double share in used car market in Q3 2023

• Sales of battery electric vehicles BEVs soared 99.9% in Q3 2023 – representing a record 1.8% market share.
• The used car market grew 5.5% in Q3 2023, up 4.6% yoy, but still below pre-pandemic figures.

VW to target sub-$35,000 EV in US by 2027

• Speaking at the Reuters Events Automotive USA 2023 conference in Detroit, VW said it plans to build the sub-$35,000 EV in the US or Mexico.
• VW also is looking at localising assembly of battery packs for the under-$35,000 EV to qualify for additional incentives under the US Inflation Reduction Act (IRA).
• The automaker has previously announced plans to build battery cells in Canada for its current and future North American-built EVs.

Fisker in talks with carmakers for production capacity partnership

• The US start-up is in consultation with five other automakers as it seeks to secure additional production capacity for its vehicles.
• “We have two cars that are almost ready. We can bring them to market fast – we just need the capacity,” the company said, speaking to Reuters in Berlin.
• The California-based startup has one vehicle on the market – an SUV called “Ocean”, being launched from a factory in Austria operated by a unit of Magna International Inc.
• Two further models, a pickup truck, and a small SUV, are expected to be released by 2025. The SUV, called PEAR, will be built with Foxconn in Ohio, but further capacity is needed for both models.

Company News

Adriatic Metals (ADT1 LN) 170p, Mkt cap £495m – Rupice Northwest drilling results

• Adriatic, which has recently delivered the Vares project in Bosnia, has completed additional drilling at its Rupice Northwest project.
• Today’s results were not included in the expanded Mineral Resource Estimate.
• Step out drilling at Rupice Northwest defined a new zone of mineralisation. Highlights include:
  • BR-39-23: 12.7m @ 27.9% ZnEq, inc. 285g/t Ag, from 164m
  • BR-42-23: 3m @ 11.2% ZnEq from 111m
    • Hole is located 130m northwest of the current Rupice MRE.
• Step out drilling at the RNW Lower Zone, with highlights including:
  • BR-38-23: 8.3m @ 52% ZnEq or 1,625/t AgEq from 223m
• Infill drilling at RNW Main Zone:
  • BR-53-23: 30m @ 30% ZnEq
• Step-out drilling at RNW Main Zone:
  • BR-39-23: 12.7m @ 28% ZnEq
• Going forward, the Company expects to generate an updated MRE for Rupice Northwest in 1Q24.
• Drilling will also be completed at  the southern sections of the Rupice deposit, which is thought to ‘contain open-ended mineralisation.’

*An SP Angel mining analyst has visited Adriatic Metals operations in Bosnia

Arc Minerals* (ARCM LN) 3.8p, Mkt Cap £47m – Arc completes joint venture agreement with Anglo American

BUY – CLICK FOR PDF

(Angol American holds 70% of the jv with Unico Minerals Limited with Arc Minerals holding the other 30% through Unico Minerals.  Unico Minerals is a 67% jv with

33% held by Kopara Investments. Arc also holds 75% in Alvis-Crest (Proprietary) Limited which holds two licenses in the Kalahari Copper Belt, known as Virgo covering >210km2, around 10km south east the recently commissioned Khoemacau Copper in Botswana.)

• Arc Minerals reports the final completion of the joint venture agreement with Anglo American with satisfaction of the final conditions precident.
• Anglo American have paid US$3.5m in cash to Unico Minerals which is 67% owned by Arc.
• Ian Lynch is appointed as a non-board CFO
• Rémy Welschinger is stepping down as Finance Director with immediate effect but will remain as a non-executive director.
• Arc has also issued 5,593,099 new shares to certain creditors bringing the total number of shares to 1,232,318,465.
• Arc is looking around for other potential
• Zambia: Arc and Anglo have just started drilling and plan to have two rigs running and to continue through the rainy season as far as is possible.
• Botswana: Arc have assays from a year ago waiting for release from the lab and will look to release these in the near future.
• Share options: In March 2021 Arc’s board surrendered their employee share options to simplify the company’s share structure.
• Investors should note the cancellation of the options is to be compensated for with the payment of £3,474,179 to be paid in cash or shares, though management appear to have no plan to settle this payment in the short term.

*SP Angel acts as Nomad and broker to Arc Minerals. An SP Angel analyst has visited Arc’s licenses in Zambia to the West of Solwezi.

Ariana Resources (AAU LN) 2.1p, Mkt Cap £23.5m – Asgard Investments portfolio

• Ariana Resources has outlined the main holdings of its 100% owned Asgard Investments which holds interests in exploration companies operating in Africa, Australia, central and southeast Asia.
• Ariana Resources hold a 1.3% investment in the privately held Rockover Holdings provides exposure to the 1.3m oz resource of the Dokwe gold project near Bulawayo, Zimbabwe where pre-feasibility level assessments indicate a possible 60,000oz pa open pit operation with a 12 years mine life.
• The company says that it has a team on site to undertake due diligence on the project including diamond drilling for the “detailed investigation of the project” where it sees “potential to increase resources through further exploration”.
• In Australia, Panther Metals (3.1% Asgard) is seeking to progress the development of the 71mt Coglia nickel laterite resource which grades 0.7% nickel and 460ppm cobalt. The company says that follow-up drilling has been completed and that its’ “High-Pressure Acid Leach (HPAL) testwork undertaken on the lateritic nickel-cobalt mineralisation … [yields] … very high nickel (92.6%) and cobalt (73.9%) extraction, from a blended sample at the -38μm size fraction”.
• Ariana also holds a 6.3% interest in Annamite Resources which is exploring the Sokdee copper/gold/molybdenum porphyry In Laos and where “Rio Tinto Exploration Pty. Ltd. … is injecting US$810,000 this year into further exploration of the project, including geophysics and drilling”.
• Work in Kazakhstan by Pallas Resources (6% Asgard) and its subsidiary Altai Resources (Asgard 8.4%) is following up “encouraging results for gold and/or copper observed across all areas and at Sarybastau and Ulkensur in particular” in the Pallas Resources project portfolio.
• Altai Resources’ focus is “on a major nickel sulphide province in eastern Kazakhstan” where the Kopekty project “hosts multiple targets with surface Ni-Cu occurrences in a geological environment analagous to Norilsk”.
• Welcoming the progress made by investee companies, Managing Director, Dr. Kerim Sener, said that “Further investment opportunities across the existing portfolio are being reviewed in addition to certain other select projects currently under investigation”.

Conclusion: Through its Asgard subsidiary, Ariana Resources gains exposure to a wide range of relatively early stage exploration projects and more advanced development opportunities.

Empire Metals* (EEE LN) 5p, Mkt Cap £28m – Pitfield diamond drill programme completed and two new high-grade targets identified

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(Empire holds a 70% interest in the Pitfield prospect 313km north of Perth, WA)

• Empire Metals have completed their three hole diamond drilling programme at Pitfield.
• The Company expects to have assay results in the coming weeks.
• However, in the meantime, the team notes visible titanium mineralisation throughout each of the three holes.
• Management suggests that titanium mineralisation now extends 350m vertically from surface.
• Additional mapping and rock chip sampling has also been completed over the large magnetics anomaly.
• The rock sampling results have generated an additional two high-grade TIO2 targets over 3km² and 6km² respectively.
• Rock chip samples yielded assay results over 10% TIO2 and up to 21.5% TIO2.
• Going forward, the Company is set to commence an RC programme over 40 holes and 6,000m this year.

Conclusion: The generation of two new high-grade TIO2 targets is exciting as the Pitfield project continues to expand in size and scale through Empire’s exploration efforts. It is reassuring to see the team’s initial analysis of drill core pointing to extensive titanium mineralisation from surface to c.350m. We look forward to the imminent assay results with anticipation. Given the extensiveness of the outcropping mineralisation across the project, Empire will now focus on generating high-grade titanium targets for upcoming drilling.

*SP Angel acts as nomad and broker to Empire Metals

Atalaya Mining (ATYM LN) 295p, Mkt Cap £400m – Transition from AIM to the Official List

• In a move aimed at expanding its investor base to a new constituency of institutional investors, Atalaya Mining has announced its intention to move its listing from London’s AIM Market to the “premium listing segment of the Official List” by the end of December.
• The company explains that “Since restarting operations at Proyecto Riotinto in 2016, Atalaya has become a leading European producer of copper, which is a key commodity for economic growth and the energy transition. Atalaya has assembled a portfolio of growth projects across several world-class mineral districts in Spain”.
• We note that during the period since 2016 Atalaya Mining has successfully delivered increased capacity at its principal, Proyecto Riotinto mine in southern Spain from an initial 5mtpa to 9.5mtpa and then to 15mtpa while expanding the resource base and operational life through exploration and evaluation of higher-grade satellite deposits capable of feeding the expanded plant.
• Atalaya Mining confirms that it “does not intend to raise any funds or offer any new securities in connection with Admission or the publication of the related prospectus … [and that] … Admission is not expected to be conditional upon shareholder approval”.
• CEO, Alberto Lavandeira, confirmed that Atalaya Mining is “committed to building upon the significant growth we have achieved to date and our intention to seek admission to the premium listing segment of the Official List reflects our confidence in our future prospects, our expanding investor base and our ambition to become a multi-asset producer with a portfolio of sustainable, scalable and low-risk operations”.

Conclusion: Since restarting operations in southern Spain in 2016, Atalaya Mining has delivered production and resource growth and extended the mine-life of its operations in Andalucia.  Expansion of its institutional investor base through a transition from AIM to the Official List seems logical at this stage of the company’s evolution.

Goldstone Resources* (GRL LN) SUSPENDED – Gold loan update

• The Company confirmed that no repayment of the Asian Investment Management Services secured gold loan was completed on the due date last Friday.
• At the time of the announcement no formal default notice has been issued.
• Should a notice be issued, the Company will have 14 days to pay the amount due before creditor can enforce its security of the Company’s Akrokeri-Homase Gold Project.
• Gold loan outstanding stood at 2.3koz as of Sep/23.
• Trading in shares remains suspended as the Company has not released its 2022 Annual and 2023 Interim results.
• Unless, the Company publishes both sets of accounts by 31 December 2023, trading in Company’s shares on AIM may be cancelled.

*SP Angel acts as broker to Goldstone Resource

Infinity Lithium (INF AU) A$0.12, Mkt Cap A$56m – €18.8m grant for the San Jose Lithium Project

• Tecnología Extremeña del Litio, a 75% owned subsidiary of the Company, has been granted €18.8m in grant funding for the San Jose Lithium Project by the Spanish Ministry of Industry, Trade and Tourism.
• The grant is part of ~€529m awarded to 26 major projects for development of EV battery chaing including €200m for Extremadura giga factory.
• The Company released an updated Scoping Study last week with Project economic highlights including:
  • 2mtpa underground operation with a 26y life of mine producing ~33ktpa battery grade LHM;
  • The team planning to use high pressure leaching technology before purification and crystallisation stage to recover an average of 90% lithium;
  • C1 opex (post by products) estimated at ~$5,700/LHM
  • Capex is estimated at €1,430m (including 20% contingency);
  • NPV8% and IRR both after tax estimated at €2.7bn and 21.3%, respectively, using $27,000/LHM price;
  • San Jose is a zinnwaldite mice replacement deposit hosting ~1.7mt LCE at 0.61% Li2O in total resource.
• The team is expecting to launch DFS related work early next year for completion in Q1/25 leading to a FID in Q4/25.

Lucara Diamonds (LUC CN) C$0.345, Mkt Cap C$161m – Strong quarterly production with the 4^th diamond exceeding 1,000 carats recovered from the Karowe mine

• In its quarterly report for the 3 months to 30^th September, Lucara Diamonds reports the recovery of 98,311 carats of diamonds bringing YTD production to 278,448 carats.
• The company is revising its previous production guidance of between 395-425,000 carats to the range 395-405,000 carats with cost guidance adjusted from the previous range of US$32.50-35.50/tonne processed to a range of US$28.00-30.50/tonne processed.
• Cash costs for the quarter were US$28.62/tonne processed which the company says are “well below the expected annual operating cash cost range of $32.50 to $35.50 per tonne of ore processed”.
• Among the quarterly production highlights, the Karowe mine yielded a 1,080 carat Type IIa white diamond, the fourth diamond of this type exceeding 1,000 carats to come from the mine, as well as a 692 carat Type IIa white diamond and “189 Specials were recovered, with six diamonds greater than 100 carats including three diamonds greater than 300 carats in weight”.
• Diamond sales of 111,673 carats during the quarter generated US$56.2m revenue bring the YTD sales to 267,764 carats and US$136.1m.
• William Lamb, President and CEO, characterised the quarterly results as “very good when considering market dynamics and the current state of the diamond sector”.
• Commenting on the state of the rough diamond market, Lucara Diamonds expresses confidence in the long-term outlook based on the “fundamentals around supply and demand as many of the world’s largest mines reach their natural end of life over the next decade” but points to a “slow recovery of economic growth in China and a voluntary import ban on rough diamonds into India … [which] … has muted the recovery of rough diamond prices following a soft market in the first six months of 2023”.
• Lucara Diamonds also explains that the continuing growth in the sales of lab-grown diamonds is being impacted by “Intense competition combined with improvements in technology …[which is accelerating the] … financial instability of producers of lab-grown diamonds”.
• The company says that these developments are increasing the differentiation between lab-grown diamonds and “the natural diamond market and highlights the unique nature and inherent rarity of natural diamonds”.
• We speculate that with its high proportion of valuable ‘special’ diamonds, Lucara Diamonds may be better placed than some other diamond producers to benefit from this market differentiations should it emerge.

Mkango Resources* (MKA LN) 8.8p, Mkt Cap £22m – Maiden ESG report and project update

• The Company released maiden Environmental, Social & Governance report for the year 2022.
• Separately, the team is reporting that a government delegation headed by Hon. Monica Chang’anamuno, Minister of Mines for Malawi, visited the Songwe Hill rare earth project site last Friday 10 November.
• The Minister confirmed its plans to sign the mining development agreement before YE23.

*SP Angel acts as nomad and broker to Mkango Resources

Tolu Minerals (TOK AU) A$0.51, Mkt cap A$30m – IPO funding to restart and expand Tolukuma gold mine in PNG

• Tolu Minerals floats on the ASX with Tolukuma Gold Mine in PNG.

• Tolukuma has previously produced ~1moz of gold at a grade of ~15g/t gold and 50g/t silver.
• The company has raised A$17.3m through the issue of 34.7m new shares at A$0.5/s.
• Tolu completed the acquisition of Lanthanein Resources Limited in Frontier Copper PNG Ltd, a company for the EL 2531 licenses in PNG for its exploration potential and rights to the area immediately surrounding the TGM mining lease.
• Infrastructure:  Tolu is spending A$4m on building an access road with 55% of this being paid for in equity highlighting the cooperation of the road builders.
• This will reduce the use and historical reliance on helicopter supply and will help with exploration.
• Power: The team is also looking to recommission the existing hydroelectric power station
• Dewatering: management are looking at tunnelling for mine dewatering and for exploration.
• Immediate Next Steps
  • Mobilise the Contractor and commence road construction.
  • Refurbish certain site infrastructure.
  • Refurbish the access to the underground mine.
  • Re-enter accessible workings in order to increase Mineral Resource confidence levels and undertake bulk sampling.
  • Refurbish a third of the hydroelectric power plant generating capacity.
  • Access the Milihamba Drive by dewatering from the top of the mine.
  • Commence targeted exploration from the Milihamba Drive.
• Tolu also has the Mt Penck epithermal gold exploration project.

Conclusion:  Management, led by Iain Macpherson are looking to significantly expand the current inferred resource of 1.61mt grading 10 g/t gold and 38 g/t silver for 503,000oz of gold.

Wishbone Gold* (WSBN LN) – 2.05p, Mkt Cap £5.2m – Drilling intersects minor copper sulphide mineralisation in HW of target zone at Cottesloe

See link for recent note: CLICK FOR PDF

• Wishbone Gold reports that the first diamond drill hole of its current campaign at its Cottesloe project in the Paterson Region of WA has reached a depth of 190m and is showing what the company describes as “encouraging” visual results on inspection of the core.
• The hole, 23CTRCD-004A is drilling through what are “interpreted to be hanging wall shales and siltstones with some disseminated pyrite” with the company saying it intersected a “sulphidic breccia … over 7m with a strong pyrite matrix and siltstone clasts with minor chalcopyrite … [a copper sulphide mineral] … from around 128m”.
• Wishbone Gold adds that a “further 20m brecciated and broken zone from 170m is highly oxidised, haematitic and boxworked likely after pyrite with soft clay zones causing core loss” and attaches photographs of the drill core, including a section from 133.7m depth, to its announcement . Encouraging Visual Results at Cottesloe – 07:00:14 13 Nov 2023 – WSBN News article | London Stock Exchange
• Today’s announcement explains that the drilling is expected to reach the target zone “at approximately 250m and continue to a depth of 400m or deeper if sufficiently encouraging”.
• The company expects assay results from this initial drilling “to be available in January 2024”.
• Chairman, Richard Poulden, welcomed the intersection of “such interesting mineralisation … [before the hole had reached] … target depth”.
• Conclusion: Initial visual results from the first diamond drill hole of the current campaign at Cottesloe has intersected minor copper mineralisation around 60m before the hole reaches the planned main mineralised target.  We await further news as the drilling proceeds and assay results from the drilling which are expected to become available in January.

*SP Angel acts as a Broker for Wishbone Gold

No.1 in Copper:  “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

Analysts

John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471

SP Angel                                                            

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35-39 Maddox Street London

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*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

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SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return of less than 15%